• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

A critical appraisal Of Amway China's e-commerce strategy

Extracts from this document...

Introduction

E-COMMERCE SYSTEM ASSIGNMENT A critical appraisal Of Amway China's e-commerce strategy COMP 5211 Pu Zhang P03091008 Amway China, a subsidiary corporation of ALTICOR will restart there e-business in china from 2004.Mr Yang CIO of Amway America Asia Area said to "IT TIME" that Amway China will start e-business in 32 cities in china. Amway put over 100 million Yuan in the IT field from 2000 to 2003 and the new annual budget will be 40 million. This traditional direct selling corporation found that combine their direct selling model with e-commerce will make their business into a new stage. I will make a critical appraisal which base on the strategy that they adopted. 1. Build an independent e-business website. In 1999, ALTICOR established an independent e-business website Quixtar in ord to make the customer's order and payment via internet. This makes a great success in America. So Amway China also creates a website for internet order, in charge of e-business .They also updata the website frequently and spend a lot of money in the hardware and software build. But there are something which can't be ignored, e-business always be considered as a reason which will reduce the profit by sellers, this contradiction in direct selling field is very evidently. ...read more.

Middle

Amway adopt "shop selling + employ salesman". Right now Amway holds more than 110 monopolistic shops and have more than 70 thousands salesman in more than 30 provinces in china. Since Amway decide to restart e-business in china, they found that if they want to mix this Chinese style direct selling model and e-business together there may have many conflicts. So Amway China didn't copy the America way. They make vip-customer system. Normal Customer can't buy products in the website, they must become a vip-customer for the qualification of buying products. But if you want to be a vip-customer you must sign a contract with the salesman, the customer who sign with the specific salesman will belong to this salesman. Obviously Amway China ignores a fact: in a strict way, Amway China isn't a traditional direct selling corporation anymore, they must face a problem that how to mix a new selling model and e-business. The problem is very clear: For achieve a "shop selling + employ salesman" e-business Amway China spend a huge sum investment in foundation facilities, If go back to traditional direct selling model, the investment which spend before will drop into water, but if continue the existing selling way, advantages of e-business like high efficiency and convenience will hardly reach. ...read more.

Conclusion

They use specific products to bring along the whole image. Since Amway China decide to start e-business, Amway Nutrlite's(The main healthy food product) advertisement is broadcasting in the most expensive Chinese TV station CCTV. From Jan 2001 Amway start to broadcast an advertisement which let the FuMingxia(the greatest diving player in china) to be the spokesperson. At the same time they also put a plane image advertisement on many media. On Sep 2002, Amway employ the Olympic gold medal winner TianLiang to be the image spokesperson. Amway China also support many sport events. Expect media advertisement Amway also make some investments in public welfare. From 1998 Amway China participates in contribution for more than 100 times, the amount is over 45 million Yuan this make a good figure in china. Amway's advertisement strategy bring them many unexpected gains, the celebrity of Amway grows very fast in china, this hardly happened in the other area in the world. Because of Amway China didn't make any advertisement before 2001, the most of Chinese people don't know what is Amway, They take the concentrated advertisement strategy won't let people have enough time to digest them. This will make people feel hard to accept. And for e-business Amway should make many online advertisements, So that people will know this system more clearly. At this stage , take a step by step advertisement strategy will be better. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level ICT in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level ICT in Business essays

  1. Advantages and Disadvantages of e-commerce in terms of easyjet

    to your door on a specified date and for a small charge. This enables people that may be too unwell to get to a shop or are unable to go shopping, to order their food and necessities simply and easily.

  2. "Negotiating with Chinese"

    company's products are an advanced technology with high quality and reasonable price. Foreign firms need to present themselves and their technologies to a number of authorities. Very often one has to endlessly repeat the same things to different negotiators who may suddenly, without explanation, be replaced by another team.

  1. Developing an Exit Strategy.

    my spouse/family or on other things that interest me o I want to leave the business to a son or daughter as my successor o This business is successful now and I want to cash out while things are going so well and the market conditions are good o My

  2. How IT Departments Are Responding to the Challenges of E-Commerce

    The New Character of IT In our interviews, we invited respondents to describe today's context for IT practice, to highlight any significant differences from the past in the purpose and spirit of the IT function, and to suggest keywords which capture the experience of responding to the demands of e-commerce.

  1. E-government strategy for St.Vincent & The Grenadines

    The government's role in ensuring that this sector realizes its full potential is to provide an enabling environment for entrepreneurship to flourish via the expansion of Public Sector Reform initiatives, in order to unlock the creative genius of our people expressed in enterprise and to nurture a culture of enterprise in St.

  2. Understanding a Company's Strategy - What to Look For.

    over the Internet * E-business, the integration, through the Internet, of all an organisation's processes from its suppliers through to its customers Stages in the Commercial Use of the Internet Boddy distinguishes between four levels of Internet use by a business, with increasing integration into core business processes at each level.

  1. Infrastructure of E - business

    Infrastructure determines how easily corporations can respond to the increasingly urgent demands of its executives, how they can respond to the E- business data requirements of modern business, and the competitive nature of a global marketplace. The technical infrastructural elements of e-business consist of internet and server technologies, hardware and software.

  2. The history behind the Boots.

    This is a small aspect when compared to the benefits of having capital and limited liability as long as over 51% of the shares are sold on the stock market as this would mean control was lost. Every business has different functional areas incorporated inside it.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work